What Does Black Money Mean?Proceeds, usually received in cash, from undergroundeconomic activity. Black money is earned through illegalactivity and, as such, is not taxed. Recipients of blackmoney must hide it, spend it only in the undergroundeconomy, or attempt to give it the appearance oflegitimacy through illegal money laundering.
Court casesIn January 2011 the Supreme Court of India asked why thenames of those who have stashed money in theLiechtenstein Bank have not been disclosed. The courtargued that the government should be more forthcoming inreleasing all available information on what it called a"mind-boggling" amount of money that is believed to beheld illegally in foreign banks.
Is this possible?e india will bringback swiss bank black money?Is this possible india can bring back swiss bank blackmoney. will indian political people do something for that.even before some days wikileaks get out list of 15 to 20peoples but it couldnt effect any one
What are the ways indian government canbring back the BLACK MONEY?do you really believe what RAMDEV baba says" by issuingordinance is possible to bring black money back from swissbank.if its possible then why so many countries failed to do it?if swissbank is main funds store for terrorism and crimes whythere is no international laws and treaties which can put ban onsuch banks and banking laws??•6 months ago•(Tiebreaker)
Total black money in India?According to a Swiss Banking Association Report (2006), "Indiahas more black money than the rest of the world combined." Indiahas stashed almost $1.456 billion in black money in Swiss banks.Black money is income obtained by illegal activities that is notreported to the government to avoid income taxes..
How much Indian black money inSwiss Banks ?Challenging the parties to issue a statement on theirstand on black money parked in Swiss banks, he said:“According to one estimate, money ranging from Rs.50-75 lakh crore ($1-1.5 trillion) is parked in Swiss bankaccounts. So I dare them (political parties) to reply tothis question. If they can’t reply that means the ranks ofthese parties are all dishonest, corrupt and theythemselves have money deposited in Swiss bankaccounts.”
2011 Indian anti-corruption movementThe 2011 Indian anti-corruption movement is a series ofongoing demonstrations and protests across India intended toestablish strong legislation and enforcement againstendemic political corruption. The movement has gainedmomentum since April 5, 2011, when anti-corruption activist AnnaHazare began his now-famous hunger strike at Jantar Mantarin New Delhi
Reasons of Black Money• The people do not pay their taxes. Even if they pay taxes, theyare not in correct proportions to their incomes.The tax evasions by corporate and industrial houses are to thetune of billions of rupees. These firms are able to make cleverusage of the income tax rules and hence, they save taxes. Thistax evasion leads to the generation of black money.• The black money is earned by gifts, hawala transactions andillegal foreign exchange deals. These deals are not scrutinized bythe government simply because these are without anydocumentary evidences
• The procedures of over billing or under billing and exaggerationof expenses lead to the generation of black money. The sale andpurchase of assets also lead to the generation of black money.The value of the property is shown to be very low in thedocuments whereas it has a very high value in the actualtransaction. The businesses are conducted in other sectors ofeconomy in the same manner and non-billed amounts areretained by the individuals and the firms as black money.
Problems of Black MoneyEven after 40 years of independence, our country is faced withpoverty and numerous economic ills. Even though socialisticpattern of society has been accepted in the constitution, ourcountry is far away from socialism and her economy is in the gripof private enterprises. In fact, India has unlicensed economywhich has given birth to corruption, inflation and black money.The poor man has been becoming poorer and rich richer justbecause of the economic ills like inflation and black money.
There are many sources of black money.Chief among these areas follows:• Import licenses.• Selling of cement licenses, steel and iron.• Transactions in heavy industries.• Transaction in public sector.• Release of industrial licenses.• Government and commercial transactions.• Forged and face currency.There are many causes of converting genuine profit intoblack money. The chief among them are:• Inflation.• General and mid-term election.• Tax evasion.
The Government May take the followingsteps to stop black money: 1. Centralised Invoicing System for all the Corporate and Non Corporate Bodys. 2. Centralised Income Tax Assessment verification System. 3. The Government should fix the market price for sale of properties: a. There should not be a difference in market price and the government price for properties. This will help us to avoid black money transaction for the differential amount of market price and the Government price. Hence, the government can generate more revenue through tax collection. b. We should develop a Computerized System for all the properties. And the purchase and sale of properties should be done through that system using PAN as identification number for tracking the properties held by individual, organizations and corporate bodies. c. We should fix the maximum value and acres of land that can be held by an individual, organization or company.